Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 

The Warehouse High Court decision

The Warehouse High Court decision

The Commerce Commission is disappointed by the High Court's decision allowing the appeals of the three Foodstuffs co-operatives and Woolworths Ltd against the Commission's decision declining clearance for either party to acquire up to 100% shares in, or assets of, The Warehouse Group Ltd.

The Commission remains concerned about competition in the supermarket sector where there is, in effect, a duopoly at present, except in the three regions where the Warehouse has opened a supercentre.

The Commission declined clearance for either acquisition because New Zealand's supermarket retail market is already highly concentrated. There are high barriers to entry in the industry, yet the Warehouse is uniquely placed to compete with the supermarkets because of its existing property portfolio, extensive distribution networks and established brand.

Commerce Commission Chair Paula Rebstock says "In coming to its decision the Commission considered that The Warehouse, both as an actual competitor in the three local markets where it has opened supercentres, and as a potential competitor in markets where it might open new supercentres, brought an important new source of competition. Consumers were already benefitting from greater competition where the supercentres exist."

"The Commission's decision was not only about the risk of eliminating the existing competition of the three Warehouse Extra stores, but also about the elimination of the potential for further competition," says Ms Rebstock.

The Commission is studying the judgment and will consider whether or not it will appeal the decision.

No further comment will be made until the full reasons for the judgment are released publicly by the High Court.

Background
Applications and decision. On 21 December 2006 the Commission received an application from the three Foodstuffs co-operatives seeking clearance to acquire up to 100% of the ordinary shares in The Warehouse Group Limited. On 17 January 2007 the Commission received an application from Woolworths Limited seeking clearance to acquire up to 100% of the shares in, or assets, of The Warehouse Group Limited. On 8 June the Commission declined to grant clearance for either acquisition, on the basis that it was not satisfied that either of the proposed acquisitions would not have, or would not be likely to have, the effect of substantially lessening competition in relevant markets.

ENDS

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Ardern Speech: Justice Summit Opens

If we want to talk about an effective justice system, we shouldn’t start with a discussion about prisons, but a discussion about New Zealand...

We believe in a ‘fair go’. We are fair minded and like to give people a chance. Ensuring everyone is treated fairly is part of the fabric of our culture.

And equally, we are defined by what we don’t believe ourselves to be – and we certainly don’t feel like the kind of place that would have one of the highest incarceration rates in the western world, and yet we do. More>>

 

Christchurch Quake: New Red Zone Payment For Uninsured

The Government will pay former residential red zone owners 100% of the 2007/08 rateable value for uninsured homes, Minister Megan Woods has announced today. More>>

ALSO:

Gordon Campbell: On MP Pay And The REAL P.C. Danger Zone

There has never been anything remotely credible about the way parliamentarians would paint themselves as the helpless victims of the Remuneration Authority when it came to their pay increases... More>>

ALSO:

Repatriation: Remains Of NZ Service People Return Home

Prime Minister Jacinda Ardern and Minister for Veterans Ron Mark say they were honoured to be with the families of service personnel as they welcomed their loved ones home. More>>

ALSO:

Cop Shop Top-Up: 1800 New Police Through NZ

Police Commissioner Mike Bush has today confirmed further details around the allocation of the 1800 additional officers, following a $298.8 million increase for Police in Budget 2018... “These 1800 officers, alongside 485 support staff, will really enhance our work to keep people safe, and ensure they feel safe,” says Mr Bush. More>>

ALSO:

Human Right Commissions: Concern On Aged Care And Consent

A new report published by the Human Rights Commission raises concerns about the legal and human rights safeguards for an estimated 5000 elderly New Zealanders in secure dementia units and psychogeriatric facilities. More>>

ALSO:

Greens AGM: Leadership Stands Firm On Waka Jumping Bill

The Green Party leadership have dug in their heels and will not be reversing any of the decisions they have made in government. Former MPs Jeanette Fitzsimons and Sue Bradford had hoped the caucus might be persuaded this weekend to pull its support from the waka jumping bill. More>>

ALSO:

TOP Still Going, Actually: New Leader For Opportunities Party

New leader Geoff Simmons' aim as the leader of TOP is to take the party into Parliament at the next election where it can advocate and implement progressive reform in areas including fair taxation, cannabis legalisation, affordable housing, and environmental protection. More>>

ALSO:

Gordon Campbell: On Another Reason To Loathe HR Departments (And On The Teachers Strike)

This morning’s news item about Police emergency call centre staff turning up for work while they’re sick – because they’re afraid their sick leave statistics will be used against them, and their jobs put in jeopardy – is not an isolated case... More>>

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages